Euroclear Begins Confiscation of Russian Assets: What This Means for Russian Investors and Why Immediate Action Is Essential

In April 2025, it was announced that Euroclear had begun preparations to confiscate approximately €3 billion in Russian assets. These funds were previously frozen as part of the European Union’s sanctions policy against Russia and are held in accounts of the Russian National Settlement Depository (NSD), processed through Euroclear’s infrastructure.

According to official statements, the confiscated assets are expected to be used to compensate European investors who incurred losses as a result of Russia’s countermeasures—such as the expropriation of foreign-owned assets, the freezing of accounts, and the nationalization of property within Russia.

However, behind this high-profile and politically framed decision lies a serious legal and financial threat to many foreign investors who have no connection to any sanctions. The risk extends to both private individuals and institutional investors whose funds were technically blocked in Euroclear due to infrastructure links, but who have no ties to Russian state institutions or individuals included on EU sanctions lists.

Which Assets Are at Risk of Confiscation: How the EU Targets Private Property Under the Pretext of Sanctions

As of now, the European Union has not disclosed the identities of the beneficiaries whose assets are set to be confiscated as part of its new measures against Russia. However, it is known that the primary focus is on assets held in accounts of the National Settlement Depository (NSD) and maintained within the Euroclear system.

These involve substantial sums of money that:

• Are technically held on infrastructure connected to Russia, but are not under the control of the Russian state;
• Are legally registered through the Russian depository but are not owned by the Russian Federation;
• Are, in reality, privately held assets—belonging to investors from the European Union, Switzerland, the United Arab Emirates, South Korea, Singapore, and also to Russian nationals who are not listed under any sanctions.

What is particularly concerning is that European regulators often lack full and verified information about the ultimate beneficial owners of these assets. This means that even “clean” funds—such as private investments, pension savings, trusts, and institutional portfolios with no connection to sanctioned entities—are at risk of unjust seizure.

Under the declared aim of “supporting victims of Russian countermeasures,” the EU is effectively opening Pandora’s box by normalizing the mass expropriation of private assets—without court proceedings, without concrete evidence, and without properly notifying the owners.

This practice seriously violates:

• The principle of the inviolability of private property, as enshrined in the Charter of Fundamental Rights of the European Union;
• Established international investment law norms;
• Key provisions of the European Convention on Human Rights, particularly Article 1 of Protocol No. 1, which guarantees the right to peaceful enjoyment of possessions.

The European Union, which positions itself as a “stronghold of the rule of law,” is eroding its own legitimacy by employing methods it has previously condemned in other countries. Intervening in private capital without a solid legal foundation or direct sanctions justification is not a pursuit of justice—it is a politically driven act of confiscation, aimed at undermining Russia’s financial system and intimidating foreign investors.

Why Immediate Action Is Necessary

Until recently, the freezing of Russian assets within Euroclear was viewed as a temporary measure under EU sanctions pressure. Today, however, the situation has drastically shifted. What was once a matter of restricted access has now evolved into actual expropriation of private property—in favor of third parties—without judicial process, without the participation of the rightful owners, and without proof of wrongdoing.

This sets a dangerous precedent that threatens all foreign investors whose assets were blocked within the European clearing system simply because they were placed through infrastructure associated with Russia.

• Each day of delay reduces the chances of asset recovery.
  Decisions regarding the redistribution of these assets are already being made. Once the redistribution process is initiated, restoring property rights becomes legally and practically far more difficult.
• Inaction may be interpreted as a refusal to defend one’s rights.
  If an investor fails to file a claim, submit an objection, or initiate legal action, this silence may be seen as acquiescence—the tacit acceptance of the confiscation. In international legal practice, this is often understood as the voluntary surrender of property due to inaction.
• Legal protection becomes more complex once redistribution begins.
  EU authorities will cite “completed procedures” and the “irreversibility of decisions,” referencing internal Euroclear rules and adopted financial directives. In such circumstances, proving the illegality of the confiscation becomes significantly more difficult, especially if no prior objections were lodged.

Failure to act is not just a loss of capital. It effectively validates a dangerous norm: that private property can be seized under the guise of geopolitical necessity, without assessing individual circumstances.

If you remain silent today, your assets may be redistributed tomorrow—to third parties the European Commission deems “victims” of Russian policy.

As a result:

• Expropriation of private property may gain a veneer of legality;
• A dangerous legal precedent will be set—one that could later be applied to other countries and investors;
• Fundamental principles of European law will be violated, including the presumption of good faith and the right to private property.

What to Do: Step-by-Step Instructions for Protecting Your Assets

1. Immediately Initiate Legal Proceedings to Unfreeze Assets
   Act under Article 6ter(5) of Regulation (EU) No 269/2014, which allows private and institutional investors to file a reasoned request to lift asset freezes.
2. Prepare and Submit an Application to the Belgian Ministry of Finance
   Your application must be legally sound and supported by documentation proving that:

• You are not listed on EU, US, UK, or UN sanctions lists;
• Your assets are private investments, acquired independently of current geopolitical events;
• You do not act on behalf of, or under the control of, any sanctioned persons or entities;
• The assets are unrelated to the Russian government, defense sector, state-owned banks, or state companies;
• All transactions involving these assets were lawful and conducted transparently.

It is essential that your application is drafted and submitted with the assistance of legal professionals familiar with the procedures of the Belgian Ministry of Finance and case law of the Belgian Council of State on such matters.

Conclusion: Protecting Your Investments Requires Immediate Action

The confiscation of assets in Euroclear represents a serious and dangerous precedent—one that could affect hundreds of law-abiding foreign investors. Even if your funds are legal and you are not subject to sanctions, silence and inaction work against you.

To defend your investment, maintain control over your capital, and avoid unjust loss of ownership, you must:

• Promptly initiate the legal process to unfreeze your assets;
• Compile a strong evidence base;
• Seek guidance from experienced legal professionals.

DTK Partners‘ legal team provides assistance to investors in submitting applications to the Belgian Ministry of Finance, and also offers representation before the EU Court of Justice and the Belgian Council of State. If your assets are frozen—now is the time to act.